CPCU 520 Practice Exam 1

Document Content and Description Below

CPCU 520 Practice Exam 1 The expenses associated with adjusting claims are referred to as Select one: A. Prospective loss costs. B. Loss adjustment expenses. C. Claims costs. D. Operating expens... es. - ✔✔B. Loss adjustment expenses. Insurer Y is small but has a specialty insurance market for high-value vehicles. In competing with a larger insurer with a broader market, Insurer Y is likely to have which one of the following advantages? Select one: A. Insurer Y would have more capital surplus available than a larger insurer would have. B. Insurer Y can be more nimble, allowing it to respond quickly to an emerging trend or change. C. Because Insurer Y has a niche market, a larger insurer would not be able to compete on price due to state rate regulation. D. Insurer Y is better able to invest in research and product development due to a more narrow market focus. - ✔✔B. Insurer Y can be more nimble, allowing it to respond quickly to an emerging trend or change. Which one of the following statements is correct? Select one: A. Some of the five ideal characteristics of rates conflict wit [Show More]

Last updated: 8 months ago

Preview 1 out of 35 pages